Thailand OKs incentives for auto parts joint ventures 

The joint ventures between a Thai company and a foreign company are required to invest a minimum of $2.8m in auto parts manufacturing.

Thailand has given the go signal to provide incentives for joint ventures between Thai and foreign companies to produce automotive parts for vehicles with various propulsion systems, the country's Board of Investment announced.

Thailand is the biggest auto production centre in Southeast Asia and serves as an important export hub for leading car manufacturers worldwide. 

The government is actively promoting investments in electric vehicles, offering attractive incentives to attract major companies to the market.

Currently, both new projects and existing parts manufacturers that are already enjoying promotions but are transitioning into joint ventures are eligible for up to two years of additional tax exemption, capped at eight years if they apply by the end of 2025. 

To be eligible, a new joint venture must invest a minimum of $2.82m (100m baht) in auto parts manufacturing, with a Thai and foreign company partnership. The Thai firm must own at least 60% of the venture and contribute at least 30% of the capital.

Recently, the Board of Investment approved South Korean car manufacturer Hyundai Motor Company for a $28m (1b baht) investment to establish a facility for assembling electric vehicles and batteries in Thailand.